February 10 2010|03.22 PM UTC

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Google Lowers Nexus One Equipment Recovery Fee

Category: News, WirelessTags: , , , ,

Nexus One Phone

The Google Nexus One Phone now has a lower Early Termination Fee for T-Mobile customers.

The “Equipment Recovery Fee”, is now $150 USD for a Nexus One owner who chooses to cancel or downgrade within 120 days of activating a T-Mobile Service Plan. The fee is even lower for T-Mobile customers who upgrade their service plan onto a Google Nexus One Phone, but then chose to cancel or downgrade service within 120 days. These T-Mobile customers will only owe a $50 USD Equipment Recovery Fee.

This is a steep drop from the previous fee imposed by Google. The previous equipment recovery fee would have had T-Mobile customers paying up to $550 USD for canceling service after a trial period of 14 days (approx. $350 from Google and $200 from T-Mobile).

Google’s actions were prompted by a letter sent by the Federal Communications Commission (FCC) in January. The purpose of the letter was to extract consumer feedback regarding ETFs. Letters were also sent to the four major U.S.-based wireless carriers: AT&T, Sprint Nextel, T-Mobile, and Verizon Wireless.

In the letter to Google, signed by Joel Gurin, FCC Consumer ond Governmental Affairs Bureau Chief, and Ruth Milkman, FCC Wireless Telecommunications Bureau Chief, the FCC states that the combined ETF fees between T-Mobile and Google is unique among all four major U.S.-based wireless carriers.

All four wireless carriers, along with Google, have until February 23, 2010 to submit to the FCC responses to inquiries related to ETFs.

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